Finding Text
Program: Coronavirus State and Local Fiscal Recovery Fund – Federal Assistance
Listing No. 21.027
Criteria: 49 CFR Part 18.36 requires grant recipients to follow the procurement standards
established by their state and their own policies as long as those standards meet
federal requirements. The City’s procurement standards meet Federal and State
requirements. Also, in compliance with the guidance set forth in the grant
agreements and with the OMB A-102 Common Rule (which applies to grants and
cooperative agreements) Attachment 1 (d), all recipients are required, during the
procurement process, to ensure vendors are not cited as suspended or debarred or
otherwise excluded from participation in federally funded contracts. This can be
accomplished by checking www.sam.gov maintained by the General Services
Administration, collecting a certification from the entity, or adding a clause or
condition to the contract with the vendor.
Condition: During our testing of the Coronavirus State and Local Fiscal Recovery Fund
(“ARPA”), it was discovered that the City did not verify whether two (2) contractors
were noted as excluded on the federal government’s suspension and debarred lists
and did not include the appropriate language in the contracts with those contractors.
Possible Effects: The City could unintentionally enter into a noncompliant contract and be forced to
reimburse the federal government for all expenditures made with a debarred or
suspended contractor. Based on a review of the excluded parties listing, the
contractors in this case were not included as suspended or debarred.
Questioned Costs: None.
Context: Two (2) contractors paid with ARPA funds were not noted as having the proper
suspension and debarment certification in their contracts; and there was no
documentation of the City’s review of the excluded party listing.
Cause: The City did not adhere to its established procurement policy, and did not obtain
suspension and debarment certifications from four contractors.
Repeat Finding: The is a repeat finding from September 30, 2023, finding 2023-002.